No Asset Sales

Glad to hear that most people are against crown asset sales. As a business owner i dont think the first thing i do is find a way to sell assets...

More the reverse, owning an asset is security for the future. Assets of national importance or natural monopolies are just valuable to put a price tag on. Handing over such assets to a third party may return instant cash to the govt, but the long term picture is that the new owner will seek a return on investment. This will be through higher prices or reduced staff. Both come at a cost to the country as a whole...

If the running of a crown owned entity really does need some restructuring, then keep the assets, brands, IP, and contract out the management.

However, I am quite against the buying back of assets. The Australian government recently bought back all the copper from Telstra clear, and they paid alot for it... Why? Copper is a dated technology. Governments are better off investing in laying new fibre, and creating a new asset (and generating employment at the same time!)

Posted: Friday 5 August 2011


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